Trunkline Gas Company, LLC

Third Revised Volume No. 1

Effective Date: 08/01/2003, Docket: RP03-534-000, Status: Effective

Original Sheet No. 312 Original Sheet No. 312 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

27. TRANSITION COSTS (Continued)

shall be paid. In addition, Trunkline shall submit a

report to the Commission setting out a comparison of its

GSR Costs and the amounts collected hereunder and any

repayments actually made.

(3) If Trunkline's collections hereunder are less than its

GSR Costs, Trunkline shall be permitted to recover such

deficiency, including carrying charges, during the

Carryover GSR Cost Collection Surcharge Period by filing

with the Commission GSR Reservation Surcharges and

interruptible Transportation rates within ninety (90)

days of the conclusion of the Initial GSR Cost

Collection Period. The GSR Reservation Charge will be

determined by dividing the remaining GSR Costs

attributable to firm service to be recovered through the

GSR Reservation Surcharge by the design billing

determinants underlying Trunkline's then-effective rates

applicable to Rate Schedules FT, SST, EFT, QNT and LFT.

The remaining GSR Costs to be recovered in the rates

under Rate Schedules IT and QNIT shall be determined by

dividing the remaining GSR Costs attributable to

interruptible services by the applicable interruptible

service design determinants underlying Trunkline's then-

effective rates. The Carryover GSR Costs Collection

period shall commence on the first day of the Month

following Commission approval of such filing.

27.3 Treatment Of Other Transition Costs

This Section 27.3 establishes procedures by which Trunkline will

recover the costs of restructuring its services in accordance with

FERC Order No. 636, et seq. and 18 C.F.R. Part 284 other than Gas

Supply Costs, the recovery of which shall be governed by Section

27.2 herein, and Unrecovered FERC Account No. 191 balances, the

recovery of which shall be governed by Section 27.1 herein.

(A) Costs of New Facilities

Trunkline shall be entitled to file under Section 4 of the

Natural Gas Act and the Commission's Regulations and recover

the capital costs and other costs incurred for, and in